ARA US Hospitality Trust (ARA H-Trust) has announced plans to sell Hyatt Place Pittsburgh Airport Hotel in Pennsylvania, US, for a price of $7.7m, reported The Business Times.
The managers of the trust told the publication that this move is expected to release capital that can be used to acquire more profitable properties or reduce existing debts.
They signed a conditional purchase and sale agreement with Bacall Companies to divest the property, according to The Edge Singapore.
Hyatt Place Pittsburgh Airport Hotel is claimed to be the smallest property in ARA H-Trust’s portfolio, making up 1% of its total value as of 31 December 2022.
It is also one of the older assets and will need a significant amount of money spent on it compared to its worth.
Additionally, the property value has declined by 9% since 2019 due to ongoing underperformance and market conditions.
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The property will be sold at the valuation conducted by the stapled group’s trustee in August.
The managers expect to complete the divestment in the first quarter of 2024.
As per the trust deeds, these managers are eligible for a divestment fee of approximately $38,500, equivalent to 0.5% of the sale consideration.
Hyatt Place Pittsburgh Airport Hotel started operating in 1998 and was last renovated in 2016.
It has 127 guest rooms and a 926ft² meeting room accommodating up to 80 guests.
Dining options at the property include the Breakfast Bar, The Placery in the lobby bar, and the 24/7 market that offers packaged grab-and-go items.
Among other amenities provided at the hotel include a 24-hour fitness centre, indoor pool, free Wi-Fi, free airport transportation, and more.
It is situated 19.3km away from downtown Pittsburgh and 12.9km from Pittsburgh International Airport.
Guests at the property also have access to nearby commercial, industrial, retail and hospitality properties.